Securities Commission Malaysia (SC) today launched a five-year Islamic Fund and Wealth Management Blueprint to drive further development and growth of Malaysia's Islamic capital market.
Taking into account global trends including the rising affluence in Asia-Pacific and emerging Muslim economies, the Blueprint aims to leverage Malaysia’s well-developed Islamic capital market ecosystem to establish the country as a leading international centre for Islamic fund and wealth management.
The initiatives will, among others, broaden linkages and connectivity, capitalise on global opportunities and increase the value add and talent base within the Islamic capital market to enhance its product and service offerings.
Leveraging Malaysia’s well-established fund management industry to grow the wealth management segment
Malaysia has been widely recognised as the world leader in Islamic capital market with a market size of RM1.7 trillion, which has more than tripled over the last decade.
As the only country in the world with a framework for Islamic fund management companies, Malaysia now houses 20 full-fledged Islamic fund managers including large international firms. Combined with other fund management companies operating Islamic windows, Malaysia has RM132.4 billion worth of Islamic assets under management (AUM), which is among the largest in the world. Malaysia is also a primary marketplace for global sukuk issuance, commanding 54% of global sukuk outstanding.
The Blueprint was launched by Datuk Johari Abdul Ghani, Second Finance Minister of Malaysia, on behalf of Prime Minister Dato’ Sri Mohd Najib Tun Razak, at the International Fund Forum 2017 held at the SC today.
Tan Sri Dato’ Seri Ranjit Ajit Singh, Chairman of the SC, in his opening remarks at the International Fund Forum, highlighted that Malaysia is well-placed to seize the growth potential of the Islamic fund and wealth management market.
“The Blueprint represents Malaysia's focused and concerted efforts in leveraging its well-established Islamic fund management industry to grow the wealth management segment. As part of the holistic development of Malaysia's Islamic markets and consistent with the Capital Market Masterplan 2, the Blueprint will also drive greater internationalisation of the Islamic fund and wealth management industry through enhanced cross-border capabilities and connectivity", he added.
Phased approach to Develop and Grow Islamic Fund and Wealth Management Industry
The Blueprint has identified strategies and key initiatives to strengthen Malaysia’s positioning as a global hub for Islamic funds and develop the country as an international provider of Islamic wealth management services. The Blueprint also aims to establish Malaysia as a regional centre for Shariah-compliant sustainable and responsible investment (SRI), leveraging Malaysia’s position as the largest SRI market in Asia.
To be implemented on a phased approach, initial work programmes arising from the Blueprint recommendations will include the formulation of a framework for SRI funds, the setting up of a global centre for Islamic capital market and the introduction of a digital investment services framework.
International Fund Forum Shared Insights into Trends and Drivers of Market and Investment Management Industry
Organised by the SC, the International Fund Forum 2017 which featured prominent market strategists and senior representatives from leading fund houses, attracted over 300 international and domestic industry stakeholders. The speakers shared their thoughts on global economic and market outlook, and prospects for the investment management industry arising from shifts in international wealth trends and growing emphasis on sustainable and responsible investment.
Prior to the International Fund Forum, Datuk Johari Abdul Ghani also met with 20 international senior industry experts from leading global fund management and investment institutions at a closed-door dialogue. Attendees included representatives from Hong Kong, Korea, Singapore and United Kingdom.
Collectively, these organisations represent about USD 19 trillion, approximately 26% of the total global assets under management. The dialogue covered topics of domestic, regional and global relevance including investment viewpoints, market perspectives and opportunities in Malaysia’s economic and corporate landscape.
